Credit Rating

ICL/DS/2026-27/279 July 09, 2026 The Manager The General Manager Listing Department Dept. Of Corporate Services National Stock Exchange of BSE Ltd. India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street, Plot No C-1, G Block, Mumbai-400001 Bandra- Kurla Complex, Scrip Code-509709 Bandra (East), Mumbai-400051 Symbol-INTLCONV Dear Sir, Subject: Intimation of Credit Rating under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (‘Listing Regulations’), we hereby inform you that CARE Ratings Limited has reviewed and reaffirmed the ratings for the Short Term and Long-Term facilities of the Company as mentioned below: Facilities/Instruments Amount (₹ crore) Rating Rating Action Long-term bank facilities 9.50 CARE BBB; Stable Assigned Long-term bank facilities 24.00 CARE BBB; Stable Upgraded from CARE BBB-; Stable Long-term / Short-term 25.00 CARE BBB; Stable / Upgraded from CARE bank facilities CARE A3+ BBB-; Stable / CARE A3 Short-term bank facilities 30.91 CARE A3+ Upgraded from CARE A3 Credit rating letter issued by CARE Ratings Ltd is enclosed herewith. Please take the same on your records. Thanking You, Yours faithfully, For International Conveyors Limited Dipti Sharma Company Secretary & Compliance Officer Press Release International Conveyors Limited July 08, 2026 Amount (₹ Facilities/Instruments Rating1 Rating Action crore) Long-term bank facilities 9.50 CARE BBB; Stable Assigned Long-term bank facilities 24.00 CARE BBB; Stable Upgraded from CARE BBB-; Stable Long-term / Short-term bank CARE BBB; Stable / CARE Upgraded from CARE BBB-; Stable / 25.00 facilities A3+ CARE A3 Short-term bank facilities 30.91 CARE A3+ Upgraded from CARE A3 Details of instruments/facilities in Annexure-1. The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with the names of respective FSRs has been disclosed under Annexure-6. Rationale and key rating drivers Revision in ratings of International Conveyors Limited (ICL) is considering improved financial performance in FY26 amid growth in scale of operation and improvement in operating margin. Ratings continues to derive comfort from promoters’ long experience in the industry, healthy investment portfolio, operation in a niche segment with few competitors in the domestic market, reputed clientele, and comfortable capital structure with improvement witnessed in debt coverage indicators. However, ratings is constrained by exposure to group companies, risk arising due to raw material price volatility, exposure to foreign currency fluctuations and working capital intensive operations. CARE Ratings Limited (CareEdge Ratings) takes note of announcement of delisting process of Elpro International Limited (EIL; group company of ICL) where promoter entities such as, I.G.E (India) Private Limited (IGE) holds 67.88% and R.C.A. Limited holds 6.85% (total promoter holding being 74.73%) of shares. Based on EIL’s market capitalisation, the acquisition of entire public shareholding would require funding of ~₹770 crore as articulated by the management. For this purpose, IGE (parent entity) and Zenox Technology Services Private Limited (Zenox; another group entity), have raised loan of ₹120 crore and ₹300 crore with a tenure of five years including moratorium of two years. As security, 58% EIL shares owned by IGE has been pledged and entire promoter group shareholding in EIL has been encumbered in favour of CTL Trusteeship Limited, acting as debenture trustee. Apart from that, the promoter group holds ~70% shares in ICL through entities and non-disposal undertaking pertaining to 50.69% shareholding in ICL has been given. Promoter entities (IGE, Zenox, and other group entities) have tied-up further funds amounting to ₹278 crore in Zenox and ₹80 crore in IGE/other group entity as articulated by the management. At a group level, the investment book stands at ~₹2,396 crore against loan against securities (LAS) debt of ~₹784 crore as on March 31, 2026. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Significant improvement in the order book position on a sustained basis. • Increase in the scale of operation above ₹350 crore while maintaining existing profit before interest, lease rentals, depreciation, and taxation (PBILDT) margins on a sustained basis. • Improvement in total debt (TD)/PBILDT below 2.00x on a sustained basis. Negative factors • Any significant increase in exposure to group entities. • Any major debt-funded capex plan, which will deteriorate the gearing above 0.50x on a sustained basis. • Deterioration in TD/PBILDT above 3.50x on a sustained basis. Analytical approach: Standalone 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Outlook: Stable The company is expected to sustain its operational performance in view of promoters’ long experience in the conveyor belt industry, and established relationships with its customers. Detailed description of key rating drivers: Key strengths Experienced promoter Incorporated in 1973, ICL was promoted by Rajendra Kumar Dabriwala of Kolkata. Dabriwala is a second-generation entrepreneur, who started his career from his family-managed coal mining business. However, with nationalisation of coal mines in India in the early 70s and rising demand for polyvinyl chloride (PVC) conveyor belts in the mining industry, Dabriwala ventured into manufacturing PVC conveyor belts. Healthy investment portfolio The company has healthy investment portfolio marked by investment having market value of ~₹325.51 crore as on December 31, 2025. Out of ₹325.51 crore, ₹284.78 crore is invested in listed equities, ₹40.24 crore in preference shares and ₹0.50 crore in AIF/ liquid funds. As on March 31, 2026, the company availed LAS of ~₹57.08 crore (sanction limit of ₹220 crore) from non-banking financial companies (NBFCs). Although the security cover is 2x, it has already pledged listed equities having market value of ₹231.81 crore. Operating in a niche segment with few competitors in the domestic market The company is engaged in a niche segment, including manufacturing and marketing solid woven PVC conveyor belts, mainly used in underground mines (coal, potash). ICL is one of the major producers of PVC conveyor belts in the domestic market. The growth in demand is linked to the growth of underground mining operations. Reputed clientele ICL’s PVC conveyor belt is mainly used in underground mining for transportation of minerals. In the domestic market, Coal India Limited is the major client of the company. As the domestic mining industry is mainly on open-cast route, the majority product is sold in the international market (such as, Canada, the US, and Europe, among others). Exports revenue accounted for ~63% of total sales of conveyor belts in FY26 (against 65% in FY25). Clients in the international market are also established players in the mining industry. Comfortable capital structure with improvement witnessed in debt coverage indicators ICL’s capital structure remained comfortable, with overall gearing improving to 0.21x as on March 31, 2026, from 0.29x as on March 31, 2025. The improvement was mainly driven by lower utilisation LAS facilities and reduced working capital borrowings. Debt coverage indicators also improved, with interest coverage ratio increasing to 4.61x in FY26 from 2.74x in FY25, and TD/PBILDT improving to 2.19x in FY26 compared to 4.26x in FY25. The improvement in coverage metrics is attributable to improved operating profit, lower utilisation of LAS, and working capital facilities. In January 2026, ICL availed an Export Credit Guarantee Scheme (ECGS) loan of ₹9.50 crore at an interest rate of 7.90%, with a 12-month morato [Showing first 8,000 characters — download PDF for full document]